ASUR 3Q13 Passenger Traffic Up 10.66% YOY

Oct 21, 2013, 09:20 ET from Grupo Aeroportuario del Sureste, S.A.B. de C.V.

MEXICO CITY, Oct. 21, 2013 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR), (ASUR) the first privatized airport group in Mexico and operator of Cancun Airport and eight other airports in southeast Mexico, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Munoz Marin International Airport in San Juan, Puerto Rico, today announced results for the three and nine-month periods ended September 30, 2013.

3Q13 Highlights1:

  • EBITDA2 increased by 16.44% to Ps.805.52 million
  • Total passenger traffic was up 10.66%
  • Total revenues increased by 7.19%, as increases of 8.81% in aeronautical revenues and 15.72% in non-aeronautical revenues more than offset the 22.47% decline in construction services revenues
  • Commercial revenues per passenger increased by 5.06% to Ps.71.25
  • Operating profit increased by 18.49%
  • EBITDA margin rose to 61.50% from 56.61% in 3Q12.

1.    Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and nine-month periods ended September 30, 2013, and the equivalent three- and nine-month periods ended September 30, 2012.  Results are expressed in nominal pesos. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures exclude transit and general aviation passengers. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Ps.13.1747

2.    EBITDA means net income before: provision for taxes, deferred taxes, profit sharing, non-ordinary items, participation in the results of associates, comprehensive financing cost and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity. Our management believes that EBITDA provides a useful measure of our performance that is widely used by investors and analysts to evaluate our performance and compare it with other companies. EBITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

Passenger Traffic

For the third quarter of 2013, total passenger traffic increased year-over-year by 10.66%. Domestic passenger traffic rose by 9.41% while international passenger traffic increased by 12.02%.

The 9.41% growth in domestic passenger traffic was driven by increases at Cancun, Veracruz, Merida, Villahermosa, Minatitlan and Oaxaca. The 12.01% growth in international passenger traffic resulted mainly from an increase of 12.55% in international traffic at the Cancun airport.

Passenger traffic for the first nine months of 2013 increased by 9.69%, reflecting increases of 8.66% in domestic passenger traffic and 10.50% in international passenger traffic.

 

Table I: Domestic Passengers (in thousands)

Airport

3Q12

3Q13

% Change

9M 2012

9M

2013

%

Change

Cancun

1,434.6

1,595.6

11.22

3,466.5

3,846.7

10.79

Cozumel

27.2

22.5

(17.28)

68.9

62.9

(8.71)

Huatulco

110.6

109.8

(0.72)

304.1

298.5

(1.84)

Merida

284.3

305.8

7.56

838.2

862.6

2.91

Minatitlan

31.9

47.3

48.28

93.3

115.4

23.69

Oaxaca

114.3

120.0

4.99

310.8

330.2

6.24

Tapachula

36.3

35.0

(3.58)

110.3

104.8

(4.99)

Veracruz

208.5

230.8

10.70

575.5

667.5

15.99

Villahermosa

229.5

243.4

6.06

658.3

694.3

5.47

TOTAL

2,477.1

2,710.2

9.41

6,425.9

6,982.9

8.66

Note:   Passenger figures exclude transit and general aviation passengers.

 

II: International Passengers (in thousands)

Airport

3Q12

3Q13

% Change

9M 2012

9M

2013

%

Change

Cancun

2,136.8

2,404.9

12.55

7,575.9

8,408.7

10.99

Cozumel

66.7

65.5

(1.80)

303.1

293.7

(3.10)

Huatulco

4.7

5.6

19.15

53.5

75.6

41.31

Merida

26.5

30.7

15.85

76.6

88.6

15.67

Minatitlan

1.6

2.3

43.75

4.5

5.8

28.89

Oaxaca

14.2

16.1

13.38

40.6

43.6

7.39

Tapachula

1.8

2.3

27.78

5.8

6.0

3.45

Veracruz

28.3

27.3

(3.53)

77.3

72.9

(5.69)

Villahermosa

17.0

18.8

10.59

43.6

45.4

4.13

TOTAL

2,297.4

2,573.5

12.01

8,180.9

9,040.3

10.50

Note:   Passenger figures exclude transit and general aviation passengers.

 

Table III: Total Passengers (in thousands)

Airport

3Q12

3Q13

% Change

9M 2012

9M

2013

%

Change

Cancun

3,571.4

4,000.5

12.01

11,042.4

12,255.4

10.98

Cozumel

93.9

88.0

(6.28)

372.1

356.6

(4.17)

Huatulco

115.3

115.4

0.09

357.6

374.1

4.61

Merida

310.8

336.5

8.27

914.8

951.2

3.98

Minatitlan

33.5

49.6

48.50

97.8

121.2

23.93

Oaxaca

128.5

136.1

5.91

351.4

373.8

6.37

Tapachula

38.1

37.3

(1.84)

116.1

110.8

(4.65)

Veracruz

236.8

258.1

8.99

652.8

740.4

13.40

Villahermosa

246.5

262.2

6.33

701.9

739.7

5.39

TOTAL

4,774.8

5,283.7

10.66

14,606.8

16,032.2

9.69

Note:   Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 3Q13

In July 2012, the Puerto Rico Ports Authority granted Aerostar, ASUR's joint venture with Highstar Capital IV and its affiliated funds, a 40-year concession to operate the Luis Munoz Marin International Airport of Puerto Rico ("SJU") under the United States FAA's Airport Privatization Pilot Program. On February 27, 2013, the transaction was consummated and Aerostar began operating the SJU Airport. During 1Q13, our Cancun airport subsidiary made a US$118.00 million capital contribution to Aerostar corresponding to its 50% equity contribution. ASUR accounts for its ownership stake in Aerostar through the equity method, in accordance with IFRS. In addition, ASUR made a US$100.00 million subordinated shareholder loan to Aerostar.

Total revenues for 3Q13 increased year-over-year by 7.19% to Ps.1,309.83 million. This was mainly due to increases of:

  • 8.81% in revenues from aeronautical services, principally as a result of the 10.66% increase in passenger traffic; and
  • 15.72% in revenues from non-aeronautical services, reflecting the 15.95% increase in commercial revenues detailed below.

These increases more than offset the 22.47% decline in revenues from construction services that resulted from lower capital expenditures and other investments in concessioned assets during the period.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, banking and currency exchange services, advertising, teleservices, non-permanent ground transportation, food and beverage, and parking lot fees.

Commercial revenues increased by 15.95% year-over-year during 3Q13, principally due to the 10.66% increase in total passenger traffic.

There were increases in revenues from the following activities:

  • 23.74% in duty-free stores;
  • 14.53% in retail operations;
  • 10.95% in food and beverage;
  • 23.90% in advertising;
  • 11.25% in car rental revenues;
  • 13.61% in other revenue;
  • 25.09% in ground transportation;
  • 10.78% in banking and currency exchange services;
  • 18.81% in teleservices; and
  • 0.53% in parking lot fees.

 

Retail and Other Commercial Space Opened since June 30, 2012

Business Name

Type

Opening Date

Cancun

Tequileria

Duty Free

May 2013

Merida

Sunglass Island

Retail

July 2012

Villahermosa

Promotora del Sol Caribe

Tourism booth

January 2013

Tienda de Artesanias

Retail

August 2012

Sunglass Island

Retail

July 2012

Veracruz

Promotora del Sol Caribe

Tourism booth

January 2013

Rent a Matic Itza

Car rentals

August 2012

Cozumel

Island Cabo

Retail

February 2013

Oaxaca

Promotora del Sol Caribe

Tourism booth

March 2013

 

Table IV: Commercial Revenues per Passenger for 3Q13

3Q12

3Q13

% Change

Total Passengers ('000)

4,824

5,324

10.38

Total Commercial Revenues

327,130

379,319

15.95

Commercial revenues from direct operations (1)

81,649

98,154

20.21

Commercial revenues excluding direct operations

245,481

281,165

14.54

 

3Q12

3Q13

% Change

Total Commercial Revenue per Passenger

67.82

71.25

5.06

Commercial revenue from direct operations per passenger (1)

16.93

18.44

8.92

Commercial revenue per passenger (excluding direct operations)

50.88

52.81

3.77

Note: For purposes of this table, approximately 48,900 and 40,300 transit and general aviation passengers are included in 3Q12 and 3Q13, respectively.

(1)  Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

Construction revenues and expenses. ASUR is required by IFRIC 12 to include in its income statement an income line reflecting the income from construction or improvements to concessioned assets made during the period. During 3Q13, ASUR recognized Ps.112.90 million in revenues from "Construction Services", a 22.47% year-on-year decline, because of lower levels of capital improvements to its concessioned assets. The same amount is recognized under the expense line "Construction Costs" because ASUR hires third parties to provide construction services.

Because equal amounts of Construction Revenues and Construction Expenses have been included in ASUR's income statement as a result of the application of IFRIC 12, the decrease in Construction Revenues in 3Q13 did not result in a proportionate decrease in the EBITDA Margin, which is equal to EBITDA divided by total revenues.

Total operating costs and expenses for 3Q13 declined by 3.39% year-over-year. This was primarily due to the following declines:

  • 22.47% in construction costs, reflecting lower levels of capital improvements made to concessioned assets during the period;
  • 0.50% in cost of services, principally reflecting fees in connection with ASUR's participation in bidding projects in Brazil that were incurred in 3Q12 but not in 3Q13; and
  • 5.80% in administrative expenses, principally due to professional fees and travel expenses during 3Q12 related to the SJU privatization project.

These declines were partially offset by the following increases:

  • 16.34% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 9.77% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee); and
  • 4.47% in depreciation and amortization, resulting mainly from capitalized investments.

Excluding the expenses and reimbursements in connection with the SJU privatization project and reimbursements, cost of services would have increased 3.71%.

 

Table V: Operating Costs and Expenses for 3Q13

3Q12

3Q13

% Change

Cost of Services

250,766

249,510

(0.50)

Construction Costs              

145,627

112,898

(22.47)

Administrative

47,378

44,631

(5.80)

Technical Assistance

36,455

42,411

16.34

Concession Fees

49,983

54,865

9.77

Depreciation and Amortization

101,056

105,569

4.47

TOTAL

631,265

609,884

(3.39)

Operating margin for the quarter increased to 53.44% from 48.34% in 3Q13 reflecting the 7.19% increase in revenues and 3.39% decline in expenses during the period.

Comprehensive Financing Gain (Loss) for 3Q13 was a Ps.2.29 million gain, compared to a Ps.6.69 million loss in 3Q12, principally due to a lower foreign exchange loss in 3Q13 resulting from US dollar-denominated debt.

During 3Q13, ASUR reported a foreign exchange loss of Ps.10.36 million which principally resulted from the 1.13% depreciation of the Mexican peso against the U.S. dollar during the period which resulted in a loss because of ASUR's  foreign currency net liability position.  ASUR's foreign currency net liability position increased in 3Q13 as compared to 3Q12 because of its incurrence in March 2013 of $215.0 million in US dollar-denominated debt in a loan from BBVA Bancomer and Merrill Lynch (US$107.5 million incurred with each bank).

Interest income increased by Ps.8.76 million year-on-year reflecting higher income from short-term investments resulting from the increase in cash balance during the period. Interest expense increased by Ps.8.40 million reflecting the higher loan balance.

 

Table VI: Comprehensive Financing Result (Cost)

3Q12

3Q13

Change

% Change

Interest income

21,341

30,105

8,746

41.07

Interest expenses

(9,079)

(17,456)

(8,377)

92.27

(Loss) gains on valuation of

Derivatives

--

--

--

--

Foreign exchange gain (loss), net

(18,953)

(10,356)

8,597

45.36

Total

(6,691)

2,293

8,984

n/a

Income (loss) from Equity Investment in Joint Venture. During 3Q13 our equity in the income of Aerostar, our joint venture with Highstar Capital IV and its affiliated funds, was a net gain of Ps.0.33 million. In addition, ASUR recorded a Ps.16.62 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), in connection with the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

From February 28, 2013 to September 30, 2013 our equity in the income of Aerostar was a net loss of Ps.94.92 million, principally due to Ps.113.8 million in one-off costs resulting from expenses incurred during the more than two years in which ASUR was involved in the bidding process for the privatization of the SJU airport, including market research, preparation of bidding documentation, obtaining the Part 139 Certificate from the FAA, advisory, legal, consulting, and debt financing fees, as well as all other costs incurred until the first day of operations under Aerostar's management.  These costs more than offset an operating income of Ps.18.88 million generated between February 28, 2013 until September 30, 2013.  In addition, ASUR recorded a Ps.46.62 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), in connection with the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

During 3Q13 total passenger traffic at the SJU airport was 2,107,097. From February 28, 2013 to September 30, 2013, total passenger traffic at SJU airport was 5,036,239.

Income Taxes. Following the changes in Mexican tax law that took effect on January 1, 2008, which established a new flat rate business tax ("Impuesto Empresarial a Tasa Unica" or "IETU") and eliminated the asset tax, the Company evaluates and reviews  its deferred assets and liabilities position as applied by Mexican tax laws.

Income taxes for 3Q13 increased by Ps.16.72 million, or 9.56% year-over-year, principally due to the following factors:

  • A Ps.1.50 million increase in IETU resulting from a higher taxable base;
  • An Ps.18.98 million increase in the provision for income taxes, reflecting the increase in taxable income;
  • A Ps.1.30 million decline in deferred income taxes resulting from the recognition of the effects of inflation in the residual value of assets; and
  • A Ps.2.49 million decrease in deferred IETU principally due to the increase in the taxable base.

Net income for 3Q13 increased by 24.89% to Ps.510.87 million from Ps.409.06 million in 3Q12. Earnings per common share for the quarter were Ps. 1.7029, or earnings per ADS (EPADS) of US$1.2925 (one ADS represents ten series B common shares). This compares with earnings per share of Ps. 1.3636, or EPADS of US$1.0350, for the same period last year.

   

Table VII: Summary of Consolidated Results for 3Q13

3Q12

3Q13

% Change

Total Revenues

1,222,011

1,309,836

7.19

Aeronautical Services

703,766

765,763

8.81

Non-Aeronautical Services

372,618

431,175

15.72

            Commercial Revenues

327,130

379,319

15.95

Construction Services

145,627

112,898

(22.47)

Operating Profit

590,746

699,953

18.49

Operating Margin %

48.34%

53.44%

10.55

EBITDA

691,801

805,522

16.44

EBITDA Margin %

56.61%

61.50%

8.63

Net Income

409,066

510,867

24.89

Earnings per Share

1.3636

1.7029

24.89

Earnings per ADS in US$

1.0350

1.2925

24.89

Note:  U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.13.1747

Consolidated Results for the Nine-Month Period ended September 30, 2013

Total revenues for 9M13 increased year-over-year by 4.87% to Ps.3,967.7 million, mainly due to the following increases:

  • 7.87% in revenues from aeronautical services as a result of the 9.69% increase in passenger traffic during the period;
  • 10.64% in revenues from non-aeronautical services, principally as a result of the 10.44% increase in commercial revenues detailed below.

These increases were partially offset by a 28.53% decline in construction services in connection with lower capital investments during the period.

Commercial revenues for 9M12 rose by 10.44% year-over-year, principally as a result of revenue increases in the following areas:

  • 12.43% in duty-free stores;
  • 8.39% in retail operations;
  • 11.72% in food and beverage;
  • 13.96% in advertising;
  • 11.78% in other income;
  • 7.06% in car rentals;
  • 18.09% in ground transportation services;
  • 8.70% in banking and currency exchange services; 
  • 4.30% in parking lot fees; and
  • 23.19% in teleservices;

 

Table VIII: Commercial Revenues per Passenger for 9M13

(in thousands)

9M12

9M13

% Change

Total Passengers *('000)

14,759

16,152

9.44

Total Commercial Revenues

1,070,649

1,182,389

10.44

Commercial revenues from direct operations (1)

249,444

277,592

11.28

Commercial revenues excluding direct operations

821,205

904,797

10.18

 

9M12

9M13

% Change

Total Commercial Revenue per Passenger

72.54

73.20

0.91

Commercial revenue from direct operations per passenger (1)

16.90

17.19

1.72

Commercial revenue per passenger (excluding direct operations)

55.64

56.01

0.66

*     For purposes of this table, approximately 151,800 and 129,000 transit and general aviation passengers are included for 9M12 and 9M13, respectively.

 (1)    Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

Total operating costs and expenses for 9M12 declined by 3.87% year-on-year. This was primarily due to the following declines:

  • 28.53% in construction costs, reflecting lower committed improvements made to concessioned assets during the period; and
  • 1.76% in administrative expenses, principally reflecting professional fees and travel expenses in connection with SJU airport in 9M12.

These declines were more than offset the following increases:

  • 1.01% in cost of services, principally reflecting higher maintenance and security costs, as well as costs incurred in the preparation of the master development plan. These increases were partially offset by the reimbursement to ASUR of fees previously paid to third parties in connection with ASUR's participation in the SJU privatization project, including travel expenses;  
  • 11.78% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 8.69% in concession fees, mainly due to the increase in regulated revenues (a factor in the calculation of the fee); and
  • 4.15% in depreciation and amortization resulting mainly from capitalized investments.

Excluding accumulated expenses and reimbursements in connection with the SJU privatization project, cost of services would have declined by 3.38%.   

Table IX: Operating Costs and Expenses for 9M13 (in thousands)

9M12

9M13

% Change

Cost of Services

708,390

715,554

1.01

Construction Costs

404,337

288,977

(28.53)

Administrative

135,992

133,594

(1.76)

Technical Assistance

119,020

133,046

11.78

Concession Fees

155,477

168,996

8.69

Depreciation and Amortization

299,627

312,074

4.15

TOTAL

1,822,843

1,752,241

(3.87)

Operating margin increased to 55.84% in 9M13, from 51.82% in 9M12.  This was mainly the result of the 4.87% increase in revenues and the 3.87% decline in operating expenses for the period.

Comprehensive Financing Gain (Loss) for 9M13 was a Ps.16.59 million loss, compared to a Ps.11.31 million gain in 9M12, principally driven by a Ps.54.60 million foreign exchange loss in 9M13 resulting from the impact of the 1.61% depreciation of the Mexican peso against the U.S. dollar during the period on ASUR's foreign currency net liability position. 

Interest income increased by Ps.31.63 million year-on-year reflecting higher income from short-term investments resulting from the increase in cash balance during the period. Interest expense increased by Ps.27.16 million reflecting the higher loan balance.

 

Table X: Comprehensive Financing Result (Cost)

9M12

9M13

Change

% Change

Interest income

62,766

94,397

31,631

50.40

Interest expenses

(29,224)

(56,387)

(27,163)

92.95

 

(Loss) gains on valuation of

derivatives

601

--

(601)

(100.00)

Foreign exchange gain (loss), net

(22,838)

(54,598)

(31,760)

139.07

Total

11,305

(16,588)

(27,893)

n/a

Net income for 9M13 increased by 17.14% to Ps.1,651.98 million. Earnings per common share for the nine-months were Ps.5.5066, or earnings per ADS (EPADS) of US$4.1797 (one ADS represents ten series B common shares).  This compares with Ps.4.7009, or EPADS of US$3.5681, for 9M12.

 

Table XI: Summary of Consolidated Results for 9M13

(in thousands)

9M12

9M13

% Change

Total Revenues

3,783,500

3,967,761

4.87

Aeronautical Services

2,164,726

2,335,080

7.87

Non-Aeronautical Services

1,214,437

1,343,704

10.64

Commercial Revenues

1,070,649

1,182,389

10.44

Construction Services

404,337

288,977

(28.53)

Operating Profit

1,960,657

2,215,520

13.00

Operating Margin %

51.82%

55.84%

7.75

EBITDA

2,260,284

2,527,594

11.83

EBITDA Margin %

59.74%

63.70%

6.63

Net Income

1,410,267

1,651,979

17.14

Earnings per Share

4.7009

5.5066

17.14

Earnings per ADS in US$

3.5681

4.1797

17.14

Note:    U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.13.1747.

Tariff Regulation

The Mexican Ministry of Communications and Transportation regulates the majority of ASUR's activities by setting maximum rates, which represent the maximum possible revenues allowed per traffic unit at each airport.

ASUR's regulated revenues for 9M13 were Ps.2,560.08 million, resulting in an annual average tariff per workload unit of Ps.155.67. ASUR's regulated revenues accounted for approximately 64.52% of total income for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with the maximum rates on an annual basis at the close of each year.

Balance Sheet

On September 30, 2013, airport concessions represented 69.10% of the Company's total assets, with current assets representing 17.12% and other assets representing 13.78%.

Cash and cash equivalents on September 30, 2013, were Ps.2,396.65 million, a 5.79% increase from the Ps.2,265.43 million in cash and cash equivalents recorded on December 31, 2012.

Shareholders' equity at the close of 9M13 was Ps.16,969.60 million and total liabilities were Ps.5,621.95 million, representing 75.11% and 24.88% of total assets, respectively. Deferred liabilities represented 32.05% of the Company's total liabilities. 

Total bank debt at September 30, 2013 was Ps.2,847.33 million, including Ps.7.50 million in accrued interest and commissions. During August and September of 2010, our Cancun airport subsidiary entered into two three-year credit agreements of Ps.350.00 million and Ps.570.00 million with two banks. The terms of the agreements include a floating interest rate equal to the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 1.5% and quarterly principal payments. In addition, in September of 2011, our Veracruz airport subsidiary entered into a three-year credit agreement of Ps.50.00 million. The terms include a floating interest rate equal to TIIE plus 0.75% and quarterly principal payments.

During 3Q13, ASUR made aggregate principal payments of Ps.98.10 million in connection with the Ps.350.00 million, Ps.570.00 million and Ps.50.00 million three-year credit agreements.

In the fourth quarter of 2011, our Cancun airport subsidiary obtained authorization for two new bank loans from Banamex and BBVA Bancomer of US$300.00 million and Ps.1,500.00 million, respectively.

On February 15, 2013, our Cancun airport subsidiary executed an agreement for bank loans of US$107.50 million from each of BBVA Bancomer and Merrill Lynch, for a total of U.S.$215.00 million. The loans have a five-year term, amortize in four semi-annual payments of 2.5% of the aggregate amount of the loans beginning on February 15, 2016 and a final payment of the aggregate principal amount of the loans outstanding on the maturity date, February 15, 2018. The loans are denominated in U.S. dollars and charge interest at a rate equal to three-month LIBOR plus 1.99%.  Proceeds from the loans were used to finance ASUR's capital contribution and subordinated shareholder loan to Aerostar. These loans are guaranteed by Grupo Aeroportuario del Sureste, S.A.B. de C.V.  In connection with these loans, BBVA Bancomer's authorization for bank loans as described above was drawn down by US$107.50 million during 1Q13.

While the BBVA Bancomer and Merrill Lynch facility is outstanding, ASUR and its subsidiaries are not permitted to make any fundamental change to its corporate structure, or create any liens upon any of its property or sell any assets that exceed more than 10% of ASUR's consolidated total assets.

Additionally, the credit facility requires that ASUR and its subsidiaries maintain a consolidated leverage ratio equal to or less than 3.50:1.00 and a consolidated interest coverage ratio equal to or less than 3.00:1.00 as of the last day of each fiscal quarter. If ASUR fails to comply with these covenants, this facility restricts its ability to pay dividends to its shareholders. Additionally, failure to comply with these covenants would result in all amounts owed under the facility to become due and payable immediately. As of the date of this report, ASUR was in compliance with those covenants.

ASUR's Cancun airport subsidiary and its joint venture partner Highstar Capital IV and its affiliated funds pledged their share ownership in Aerostar as collateral for US$350.00 million in senior secured notes issued by, and a $60.00 million credit facility obtained by, Aerostar that has not been drawn down yet

Capital Expenditures

During 3Q13, ASUR made investments of Ps.130.25 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans. During 9M13 capital expenditures totaled Ps.323.52 million.

IFRS Adoption

In compliance with regulations established by the Mexican National Banking and Securities Commission (CNBV), as of January 1, 2012 the Company has adopted International Financial Reporting Standards (IFRS) as the accounting standards to prepare its financial statements.

Furthermore, and in compliance with INIF 19 "Changes derived from the adoption of IFRS," the most significant accumulated changes in net shareholders' equity as of January 1, 2011 are included in the table below:

 

Table XII: Effects on the Initial Shareholders' Equity Resulting from the Adoption of IFRS as of January 1, 2011

(in thousands of Mexican Pesos)

 

Item

 

Description

Capital Stock

Retained Earnings

Legal Reserve

Total Shareholders' Equity

Labor liabilities

Elimination of severance liabilities according to NIF D-3 and creation of a liability under IAS 19 Net

7,835

7,835

Deferred employee profit sharing

Reversal of deferred employee profit sharing as it is outside the reach of IAS 12

(2,905)

(2,905)

Creation of a reserve for vacation

Recognition of accrued vacation rights not used by year-end

(18,339)

(18,339)

Deferred Assets (income tax and flat tax)

Impact on deferred IETU derived from the recognition of provisions for vacations and employee benefits

3,534

3,534

Capital Stock

Elimination of inflation accounting

(5,031,928)

(5,031,928)

Legal Reserve

Elimination of inflation accounting

(23,025)

 

(23,025)

 

Capital Stock and Legal Reserve

Reclassification of inflation accounting of capital stock and legal reserve to retained earnings

5,054,953

5,054,953

TOTAL

(5,031,928)

5,045,078

(23,025)

(9,875)

     

      

 Table XIII: Principal Effects of IFRS on Shareholders' Equity

(In thousands of Mexican Pesos)

December 31,

2012

September 30,

2013

Shareholders' Equity Under Mexican Financial Reporting Standards

16,486,523

16,985,093

IFRS Adjustments:

Deferred Employee Profit Sharing (Note d)

(4,192)

(3,362)

Severance Liability and actuarial gains and losses (Note f)

10,003

11,344

Reserve for Vacations (Note e)

(23,744)

(26,120)

Deferred IETU  (Note c)

2,405

2,644

Total IFRS Adjustments

(15,528)

(15,494)

Shareholders' Equity Under IFRS

16,470,995

16,969,599

         See page 23 for notes on IFRS transition effects.

 

 

Table XIV: Principal Effects of IFRS on the Income Statement

(In thousands of Mexican Pesos)

3Q12

3Q13

9M12

9M13

Net Income Under Mexican Financial Reporting Standards

409,340

511,021

1,413,091

1,651,944

Elimination of severance liabilities in accordance with NIF D-3 and creation of a liability under IAS 19 – Net (Note d)

(204)

(10)

580

1,340

Elimination of PTU difference

-

(164)

-

831

Recognition of accrued rights not used (Note e)

(601)

(49)

(1,403)

(2,376)

Effect on deferred IETU resulting from the recognition of a reserve for vacation and employee benefits (Note c)

531

69

(2,001)

240

Net Income Under IFRS

409,066

510,867

1,410,267

1,651,979

Translation effect on foreign currency transactions

 

-

16,567

-

46,624

Actuarial Gains and Losses

(265)

-

(86)

-

Comprehensive Net Income Under IFRS

408,801

527,434

1,410,181

1,698,603

See page 23 for notes on IFRS transition effects.

3Q13 Earnings Conference Call

Day:         

Tuesday, October 22, 2013

Time:           

10:00 AM US ET; 9:00 AM Mexico City time

Dial-in number:

1-888-259-8885 (US & Canada) and 1-913-312-0655  

(International & Mexico)

Access Code:

9877060

Please dial in 10 minutes before the scheduled start time.

Replay:            

Tuesday, October 22, 2013 at 1:00 PM US ET, ending at midnight US ET on Sunday, October 27, 2013. Dial-in number: 1-877-870-5176 (US & Canada); 1-858-384-5517 (International & Mexico). Access Code: 9877060.

 

Analyst Coverage In accordance with Mexican Stock Exchange Internal Rules article 4.033.01 ASUR informs that the stock is covered by the following broker-dealers: Actinver Casa de Bolsa, Barclays, BBVA Bancomer, BofA Merril Lynch, Citi Investment Research, Credit Suisse, Grupo Bursatil Mexicano, Grupo Financiero Interacciones, Grupo Financiero Monex, HSBC, Intercam Casa de Bolsa, Itau BBA, INVEX, JP Morgan, Morgan Stanley, Morningstar, Santander Investment, Scotia Capital, UBS Casa de Bolsa, Vector.

Please note that any opinions, estimates or forecasts regarding the performance of ASUR issued by these analysts reflect their own views, and therefore do not represent the opinions, estimates or forecasts of ASUR or its management. Although ASUR may refer to or distribute such statements, this does not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein.

About ASUR: Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the southeast of Mexico, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Munoz Marin International Airport of Puerto Rico. The Company is listed both on the NYSE in the U.S., where it trades under the symbol ASR, and on the Mexican Bolsa, where it trades under the symbol ASUR. One ADS represents ten (10) series B shares.

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR's filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

# # # TABLES TO FOLLOW # # #

 

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Operating Results per Airport

Thousands of Mexican pesos 

Item

3Q

2012

3Q 2012 Per

Workload Unit

3Q

2013

3Q 2013 Per

Workload Unit

9M 

2012

9M 2012 Per

Workload Unit

9M

2013

9M 2013 Per

Workload Unit

Cancun (1)

Aeronautical Revenues

528,224

145.2

581,393

142.9

1,635,179

145.2

1,787,424

143.3

Non-Aeronautical Revenues

328,370

90.3

382,916

94.1

1,085,231

96.4

1,204,375

96.6

Construction Services 

89,560

24.6

25,760

6.3

256,127

22.7

99,170

8.0

Total Revenues

946,154

260.1

990,069

243.4

2,976,537

264.4

3,090,969

247.8

Operating Profit

477,131

131.2

549,911

135.2

1,599,883

142.1

1,825,596

146.4

EBITDA

541,507

148.9

616,554

151.6

1,792,010

159.2

2,021,757

162.1

Merida

Aeronautical Revenues

46,161

129.7

48,655

128.0

136,714

129.5

138,961

127.7

Non-Aeronautical Revenues

13,539

38.0

15,338

40.4

39,390

37.3

42,949

39.5

Construction Services 

7,871

22.1

487

1.3

28,269

26.8

626

0.6

Other (2)

7

-

8

-

19

-

22

-

Total Revenues

67,578

189.8

64,488

169.7

204,392

193.6

182,558

167.8

Operating Profit

17,170

48.2

21,118

55.6

50,949

48.2

50,736

46.6

EBITDA

25,273

71.0

29,914

78.7

75,255

71.3

77,108

70.9

Villahermosa

Aeronautical Revenues

31,433

122.3

32,815

121.1

89,372

121.6

92,168

120.3

Non-Aeronautical Revenues

9,731

37.9

10,148

37.4

27,226

37.0

29,170

38.1

Construction Services

4,450

17.3

4,722

17.4

5,646

7.7

5,347

7.0

Other (2)

18

0.1

19

0.1

55

0.1

55

0.1

Total Revenues

45,632

177.6

47,704

176.0

122,299

166.4

126,740

165.5

Operating Profit

14,865

57.8

15,282

56.4

39,662

54.0

39,709

51.8

EBITDA

20,632

80.3

21,116

77.9

56,814

77.3

57,181

74.6

Other Airports (3)

Aeronautical Revenues

97,948

148.4

102,900

147.6

303,461

152.1

316,527

149.4

Non-Aeronautical Revenues

20,978

31.8

22,773

32.7

62,590

31.4

67,210

31.7

Construction Services

43,746

66.3

81,929

117.5

114,295

57.3

183,834

86.8

Other (2)

4,556

6.9

30,056

43.1

6,180

3.1

41,167

19.4

Total Revenues

167,228

253.4

237,658

341.0

486,526

243.9

608,738

287.4

Operating Profit

27,504

41.7

56,536

81.1

93,837

47.0

129,265

61.0

EBITDA

49,960

75.7

80,314

115.2

158,826

79.6

199,829

94.3

Holding & Service companies (4)

Construction Services

-

 n/a 

-

 n/a 

-

 n/a 

-

 n/a 

Other (2)

228,871

 n/a 

266,299

 n/a 

672,929

 n/a 

736,668

 n/a 

Total Revenues

228,871

 n/a 

266,299

 n/a 

672,929

 n/a 

736,668

 n/a 

Operating Profit

54,076

 n/a 

57,105

 n/a 

176,326

 n/a 

170,214

 n/a 

EBITDA

54,430

 n/a 

57,624

 n/a 

177,379

 n/a 

171,719

 n/a 

Consolidation Adjustment

Consolidation Adjustment

(233,452)

 n/a 

(296,381)

 n/a 

(679,183)

 n/a 

(777,912)

 n/a 

Group

Aeronautical Revenues

703,766

143.3

765,763

141.4

2,164,726

143.9

2,335,080

142.0

Non-Aeronautical Revenues

372,618

75.9

431,175

79.6

1,214,437

80.7

1,343,704

81.7

Construction Services

145,627

29.7

112,898

20.8

404,337

26.9

288,977

17.6

Total Revenues

1,222,011

248.9

1,309,836

241.8

3,783,500

251.5

3,967,761

241.3

Operating Profit

590,746

120.3

699,952

129.2

1,960,657

130.3

2,215,520

134.7

EBITDA

691,801

140.9

805,522

148.7

2,260,284

150.2

2,527,594

153.7

(1)Reflects the results of operations of Cancun Airport and two Cancun Airport Services subsidiaries on a consolidated basis.

(2) Reflects revenues under intercompany agreements which are eliminated in the consolidation adjustment.

(3) Reflects the results of operations of our airports located in Cozumel, Huatulco, Minatitlan, Oaxaca, Tapachula and Veracruz.

(4) Reflects the results of operations of our parent holding company and our services subsidiaries. Because none of these entities hold the concessions for our airports, we do not report workload unit data for theses entities.

 

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Statement of Income from January 1 to September  30,  2013 and 2012

Thousands of Mexican pesos 

I t e m

 9 Months 

 9 Months 

 % Change 

 3Q 

 3Q 

%

2012

2013

%

2012

2013

Change

Revenues

Aeronautical Services

2,164,726

2,335,080

7.87

703,766

765,763

8.81

Non-Aeronautical Services

1,214,437

1,343,704

10.64

372,618

431,175

15.72

Construction Services

404,337

288,977

(28.53)

145,627

112,898

(22.47)

Total Revenues

3,783,500

3,967,761

4.87

1,222,011

1,309,836

7.19

Operating Expenses

Cost of Services

708,390

715,554

1.01

250,766

249,510

(0.50)

Construction Costs

404,337

288,977

(28.53)

145,627

112,898

(22.47)

General and Administrative Expenses

135,992

133,594

(1.76)

47,378

44,631

(5.80)

Technical Assistance

119,020

133,046

11.79

36,455

42,411

16.34

Concession Fee

155,477

168,996

8.70

49,983

54,865

9.77

Depreciation and Amortization

299,627

312,074

4.15

101,056

105,569

4.47

Total Operating Expenses

1,822,843

1,752,241

(3.87)

631,265

609,884

(3.39)

Operating Income

1,960,657

2,215,520

13.00

590,746

699,953

18.49

Comprehensive Financing Cost

11,305

(16,588)

(246.73)

(6,691)

2,293

(134.26)

Participation in the Results of

Associated

(94,916)

-

336

-

Non-Ordinary Item

Non-Ordinary Item

-

-

-

-

0

-

Income Before Income Taxes

1,971,962

2,104,016

6.70

584,055

702,581

20.29

Provision for IETU

12,328

13,206

7.12

5,404

6,941

28.47

Provision for Income Tax

573,494

602,631

5.08

162,981

181,959

11.64

Provision for Asset Tax

8,597

8,597

0.01

2,866

2,866

-

Deferred Income Taxes

(49,300)

(188,476)

282.31

(2,904)

(4,201)

44.63

Deferred IETU

16,576

16,079

(2.99)

6,642

4,149

(37.55)

Net Income for the Year

1,410,267

1,651,979

17.14

409,066

510,867

24.89

Earning per Share

4.70

5.51

17.14

1.3636

1.7029

24.89

Earning per American Depositary Share (in U.S. Dollars)

3.57

4.18

17.14

1.0350

1.2925

24.89

Exchange rate per dollar Ps. 13.1747

 

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Balance Sheet as of September 30, 2013 and 2012

Thousands of Mexican pesos 

I t e m

September

2013

December

2012

 Change 

% Change

A s s e t s 

Current Assets

Cash and Cash Equivalents

2,396,648

2,265,427

131,221

5.79

Trade Receivables, net

350,975

444,238

(93,263)

(20.99)

Recoverable Taxes and Other Current Assets

1,121,737

455,118

666,619

146.47

Total Current Assets

3,869,360

3,164,783

704,577

22.26

Non Current Assets

Machinery, Furniture and Equipment, net

316,979

314,634

2,345

0.75

Airports Concessions, net

15,607,494

15,629,821

(22,327)

(0.14)

Investment in Associates

1,459,710

-

1,459,710

-

Loans to Associated Companies

1,338,004

-

1,338,004

-

Total  Assets

22,591,547

19,109,238

3,482,309

18.22

Liabilities and Stockholders' Equity

Current Liabilities

Trade Accounts Payable

14,019

8,694

5,325

61.25

Bank Loans

12,654

281,612

(268,958)

(95.51)

Accrued Expenses and Others Payables

958,519

404,674

553,845

136.86

Total Current Liabilities

985,192

694,980

290,212

41.76

Long Term Liabilities

Bank Loans

2,834,676

33,333

2,801,343

8,404.11

Deferred Income Taxes

1,375,589

1,499,707

(124,118)

(8.28)

Deferred Flat Rate Business Tax

420,216

404,137

16,079

3.98

Labor Obligations

6,275

6,086

189

3.10

Total Long Term Liabilities

4,636,755

1,943,263

2,693,492

138.61

-

Total Liabilities

5,621,947

2,638,243

2,983,704

113.09

-

Stockholders' Equity

-

Capital Stock

7,767,276

7,767,276

-

-

Legal Reserve

517,504

412,878

104,626

25.34

Share Repurchase Reserve

-

-

-

-

Net Income for the Period

1,651,979

2,075,328

(423,349)

(20.40)

Cumulative Effect of Conversion of Foreign Currency

46,624

46,624

-

IFRS Conversion Adjustment

5,045,078

5,045,078

-

-

Retained Earnings 

1,941,139

1,170,435

770,704

65.85

Total Stockholders' Equity

16,969,599

16,470,995

498,605

3.03

-

Total Liabilities and Stockholders' Equity

22,591,547

19,109,238

3,482,309

18.22

 

 

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

 Consolidated Statement of Cash flow from January 1 to September  30,  2013 and 2012

Thousands of Mexican pesos

Related

 9 Months 

 9 Months 

%

 2Q 

 2Q 

%

2012

2013

Change

2012

2013

Change

Operating Activities

Income Before Income Taxes

1,971,962

2,104,016

7

584,055

702,581

20

Items Related with Investing Activities:

Depreciation and Amortization

299,627

312,074

4

101,056

105,569

4

Participation in the Results of Associates

94,916

(336)

Loss on Disposal of Fixed Assets

-

-

-

-

Interest Income

(62,766)

(94,397)

50

(21,342)

(30,105)

41

Provisions

-

-

-

-

-

-

Sub-Total

2,208,823

2,416,609

9

663,769

777,709

17

Increase in Trade Receivables

177,429

93,263

(47)

68,451

40,206

(41)

Decrease in Recoverable Taxes and other Current Assets

231,373

(712,742)

(408)

197,846

(173,638)

(188)

Other Deferred Assets

-

-

-

-

-

Income Tax Paid

(348,434)

(583,491)

67

(348,434)

(583,491)

67

   Trade Accounts Payable

-

-

-

349,424

-

   Accrued Expenses and Others Payables

(157,487)

552,445

(451)

(15,826)

211,231

(1,435)

    Long Term Liabilities

-

-

-

-

-

Net Cash Flow Provided by Operating Activities

2,111,704

1,766,084

(16)

565,806

621,441

10

Investing Activities

   Investments in Associates

(1,508,002)

-

-

-

   Loans granted to Associates

(3,399,330)

-

-

-

   Loans repaid by Associates

2,163,210

-

-

-

   Investments in Machinery, Furniture and Equipment, net

(405,050)

(323,524)

(20)

(122,150)

(130,247)

7

   Investments in Rights to Use Airport Facilities

-

-

-

-

-

   Investments in Construction in Process

-

-

-

-

-

   Investments in Others

-

-

-

-

-

Interest Income

62,766

94,397

50

21,342

30,105

41

Net Cash Flow Provided by Investing Activities

(342,284)

(2,973,249)

769

(100,808)

(100,142)

(1)

Excess Cash to Use in Financing Activities:

1,769,420

(1,207,166)

(168)

464,998

521,298

12

Bank Loans

(277,497)

2,538,387

(1,015)

(92,499)

(66,502)

(28)

Dividends Paid

(1,080,000)

(1,200,000)

11

-

-

-

Tax on Dividends Paid

-

-

-

-

Net Cash Flow Provided by Financing Activities

(1,357,497)

1,338,387

(199)

(92,499)

(66,502)

(28)

Net Increase in Cash and Cash Equivalents

411,923

131,221

(68)

372,499

454,797

22

Cash and Cash Equivalents at Beginning of Period

1,529,667

2,265,427

48

1,569,091

1,941,851

24

Cash and Cash Equivalents at the End of Period

1,941,590

2,396,648

23

1,941,590

2,396,648

23

 

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Statement of Income from January 1 to September  30,  2013 and 2012

Thousands of Mexican pesos 

I t e m

 Cumulative 

 Cumulative 

 3Q 

 3Q 

2012

2013

2012

2013

 Mexican NIF 

 Transition Effects 

 IFRS 

 Mexican NIF 

 Transition Effects 

 IFRS 

 Mexican NIF 

 Transition Effects 

 IFRS 

 Mexican NIF 

 Transition Effects 

 IFRS 

Revenues

Aeronautical Services

2,164,726

2,164,726

2,335,080

2,335,080

703,766

703,766

765,763

765,763

Non-Aeronautical Services

1,214,437

1,214,437

1,343,703

1,343,703

372,618

372,618

431,175

431,175

Construction Services

404,337

404,337

288,977

288,977

145,627

145,627

112,898

112,898

Total Revenues

3,783,500

-

3,783,500

3,967,760

-

3,967,760

1,222,011

-

1,222,011

1,309,836

-

1,309,836

Operating Expenses

Cost of Services

707,520

870

708,390

715,285

269

715,554

249,961

805

250,766

249,237

273

249,510

Construction Costs

404,337

404,337

288,977

288,977

145,627

145,627

112,898

112,898

General and Administrative Expenses

710,116

710,116

747,709

747,709

234,872

234,872

247,476

247,476

Total Operating Expenses

1,821,973

870

1,822,843

1,751,971

269

1,752,240

630,460

805

631,265

609,611

273

609,884

Operating Income

1,961,527

(870)

1,960,657

2,215,789

(269)

2,215,520

591,551

(805)

590,746

700,226

(273)

699,953

Comprehensive Financing Cost

Interest Receivable

62,766

62,766

94,397

94,397

21,342

21,342

30,105

30,105

Interest Payable

(29,224)

(29,224)

(56,387)

(56,387)

(9,080)

(9,080)

(17,456)

(17,456)

Exchange (losses) Gains, net

(22,838)

(22,838)

(54,598)

(54,598)

(18,953)

(18,953)

(10,356)

(10,356)

Loss (gains) on Valuation of Derivative 

-

0

-

-

-

Financial Instruments 

601

601

-

-

0

-

-

-

Participation in the Results of

Associated

(94,916)

(94,916)

336

336

Non-Ordinary Item

Non-Ordinary Item

47

(47)

(0)

64

(64)

-

0

-

-

50

(50)

0

Income Before Income Taxes

1,972,785

(823)

1,971,962

2,104,221

(205)

2,104,016

584,860

(805)

584,055

702,804

(223)

702,581

Provision for IETU

12,328

12,328

13,206

13,206

5,404

5,404

6,941

6,941

Provision for Income Tax

573,494

573,494

602,631

602,631

162,980

162,980

181,959

181,959

Provision for Asset Tax

8,597

8,597

8,597

8,597

2,866

2,866

2,866

2,866

Deferred Income Taxes

(49,300)

(49,300)

(188,476)

(188,476)

(2,903)

(2,903)

(4,201)

(4,201)

Deferred IETU

14,575

2,001

16,576

16,319

(240)

16,079

7,173

(531)

6,642

4,218

(69)

4,149

Net Income for the Year

1,413,091

(2,824)

1,410,267

1,651,944

35

1,651,979

409,340

(274)

409,066

511,021

(154)

510,867

Earning per Share

4.71

(0.01)

4.70

5.51

0.00

5.51

1.36

(0.00)

1.36

1.70

(0.00)

1.70

Earning per American Depositary Share (in U.S. Dollars)

3.58

(0.01)

3.57

4.18

0.00

4.18

1.04

(0.00)

1.03

1.29

(0.00)

1.29

Exchange rate per dollar Ps. 13.1747

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Balance Sheet as of  September 30, 2013 and 2012

Thousands of Mexican pesos 

I t e m

September 2013

December 2012

 Mexican NIF 

 Transition Effects 

 IFRS 

 Mexican NIF 

 Transition Effects 

 IFRS 

A s s e t s 

Current Assets

Cash and Cash Equivalents

2,396,648

2,396,648

2,265,427

2,265,427

Trade Receivables, net

350,975

350,975

444,238

444,238

Recoverable Taxes and Other Current Assets

1,125,099

(3,362)

1,121,737

459,310

(4,192)

455,118

Total Current Assets

3,872,722

(3,362)

3,869,360

3,168,975

(4,192)

3,164,783

Non Current Assets

Machinery, Furniture and Equipment, net

316,979

316,979

314,634

314,634

Airports Concessions, net

15,607,494

15,607,494

15,629,821

15,629,821

Investment in Associates

1,459,710

1,459,710

Deferred Employees' Statutory Profit Sharing 

-

-

-

Loans To Associated Companies

1,338,004

1,338,004

Total Non Current Assets

18,722,187

-

18,722,187

15,944,455

-

15,944,455

Total  Assets

22,594,909

(3,362)

22,591,547

19,113,430

(4,192)

19,109,238

Liabilities and Stockholders' Equity

Current Liabilities

Trade Accounts Payable

14,019

14,019

8,694

8,694

Bank Loans

12,654

12,654

281,612

281,612

Accrued Expenses and Others Payables

932,399

26,120

958,519

380,930

23,744

404,674

Total Current Liabilities

959,072

26,120

985,192

671,236

23,744

694,980

Long Term Liabilities

Bank Loans

2,834,676

2,834,676

33,333

33,333

Deferred Income Taxes

1,375,589

1,375,589

1,499,707

1,499,707

Deferred Flat Rate Business Tax

422,860

(2,644)

420,216

406,542

(2,405)

404,137

Labor Obligations

17,619

(11,344)

6,275

16,089

(10,003)

6,086

Total Long Term Liabilities

4,650,744

(13,989)

4,636,755

1,955,671

(12,408)

1,943,263

Total Liabilities

5,609,816

12,131

5,621,947

2,626,907

11,336

2,638,243

Stockholders' Equity

Capital Stock

12,799,204

(5,031,928)

7,767,276

12,799,204

(5,031,928)

7,767,276

Legal Reserve

535,118

(17,614)

517,504

430,492

(17,614)

412,878

Share Repurchase Reserve

-

-

-

-

Net Income for the Period

1,651,944

35

1,651,979

2,092,509

(17,181)

2,075,328

Cumulative Effect of Conversion of Foreign Currency

46,624

46,624

IFRS Conversion Adjustment

-

5,045,078

5,045,078

-

5,045,078

5,045,078

Retained Earnings 

1,952,203

(11,064)

1,941,139

1,164,318

6,117

1,170,435

Total Stockholders' Equity

16,985,093

(15,494)

16,969,599

16,486,523

(15,528)

16,470,995

Total Liabilities and Stockholders' Equity

22,594,909

(3,362)

22,591,547

19,113,430

(4,192)

19,109,238

REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS

Below is a description of significant changes related to the implementation of IFRS:

a)  Inflation The Company determined that the inflationary effects relating to the capital stock and legal reserve accounts should be eliminated in accordance with International Accounting Standards "IAS" 21 and 29, which were in effect on the date IFRS was adopted.

Based on IFRS 1, the Company has determined it does not have to eliminate the effects of inflation on concessions. This is due to the decision of the Company to apply the transition rules of IFRIC 12 as part of the initial adoption of IFRS 1, which allow for the exception from retrospective application in cases where the "impracticability" of reconstructing asset balances is too significant. Therefore, the Company has recorded the account balances previously registered under Mexican FRS, which contain the effects of inflation through December 31, 2007, as opening balances for the adoption of IFRIC 12.

b)  Property, plant and equipment The Company used the value of property, plant and equipment listed on the balance sheet on the date it adopted IFRS as the cost of property, plant and equipment as of the transition date.

c) Deferred taxes and deferred income tax or IETU tax The Company has determined that it must recognize both forms of taxes (income tax or flat tax for each one of its subsidiaries) for the determination of deferred taxes based on its income projections.

d) Employee profit sharing and labor liabilities On the date IFRS was adopted the Company eliminated the liability relating to deferred profit sharing and severance as an adjustment to its opening balance sheet.

In addition, MFRS D-3 "Employee Benefits", provided that all termination and severance benefits, including those paid in the case of involuntary termination, are recorded on an actuarial basis to estimate the corresponding liability.  Under IAS 19, an entity recognizes termination benefits as a liability whenever the entity is obligated to (a) terminate an employee's contract prior to its expiry or (b) establish termination benefits as a result of a buy-out plan.  As a result, ASUR cancelled its provisions for employee termination on the IFRS transition date.  In accordance with IFRS 1, "First-time Adoption of IFRS", ASUR recognized its actuarial gains and losses accumulated in net income at the transition date.  As a result, the balance sheet at the transition date reflects all liabilities related to employee benefits.  In accordance with IAS 19, ASUR will recognize future actuarial gains and losses from employee benefits in net income.

e) Creation of a reserve for unused vacations On the date IFRS was adopted, the Company recognized an accrual for the vacation rights not used by year-end, according to IAS 19 "Employee Benefits.

f) Non ordinary items in the income statement The line in the income statement named "Non ordinary items" has been reclassified as "Operating expenses" because IFRS does not recognize extraordinary items as a line in the income statement.

SOURCE Grupo Aeroportuario del Sureste, S.A.B. de C.V.